Cape Verde’s Minister of Internal Affairs, Paulo Rocha, announced that the government is giving Macau Legend one final opportunity to present an alternative plan for the unfinished hotel-casino project in Praia.
According to news agency Lusa, the developer has been under scrutiny, and the government has initiated a process to revert the project, which includes a site on Santa Maria islet and the Gamboa seafront.
Rocha stated that the government has allowed 60 days for Macau Legend, founded by David Chow Kam Fai, to submit a new proposal, although he was uncertain when this period began. If no proposal is received, the government will finalize the reversion process and seek other potential investors.
The construction site, covering approximately 160,000 square meters, has been inactive for a long time, prompting the government to prioritize its resolution. The project is considered strategic for Praia and Cape Verde, and the government is eager to find a solution.
In 2015, Macau Legend committed to a $294.3 million investment, with the first phase expected to finish in 2021.
However, recent losses and significant debts have raised concerns about the company’s viability. The operator is exploring options to challenge the government’s decision on the project’s reversion.
Macau Legend has reported a significant increase in loss for 2024, totaling HK$667.23 million ($85.78 million), causing concerns about its financial sustainability.
The company recently stated it has secured agreements with its lenders to restructure its debt, in a dispatch issued to clarify its auditors regarding the company’s ability to continue.
The operator is also set to lose its satellite casino operations in Macau, under the concession of SJM, at the end of this year, prompting further concerns over its financial sustainability.
